Nvidia officially surpassed Apple to become the world’s second-most valuable company at the close of Wednesday’s market, fueled by the booming artificial intelligence sector over the past year. Nvidia now sits behind only Microsoft in market value.
Nvidia’s market cap exceeded $3 trillion for the first time, reaching $3.019 trillion, while Apple’s stood at $2.99 trillion. Microsoft led both with a market cap of $3.15 trillion.
Financial Performance and Stock Surge
Nvidia’s net income soared to $14.9 billion last quarter on a revenue of $26 billion. Since their first-quarter earnings report in May, Nvidia’s stock has surged 24%.
In contrast, Nvidia’s net income was $0.7 billion in the last quarter of 2022. The company’s intense focus on AI training chips has driven a remarkable rise in shares, increasing by 3,290% over the last five years.
CFRA analyst Angelo Zino commented on Nvidia’s trajectory: “As we look ahead, we think Nvidia is on pace to become the most valuable company, given the plethora of ways it can monetize AI and our belief that it has the largest addressable market expansion opportunity across the tech sector.”
This year, Apple has been surpassed twice. Microsoft overtook Apple earlier in the year, partly due to its focus on AI, and maintains its position as the world’s most valuable company.
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